In FY 2011, we continued investigation of the staphylococcal peptide cytolysins, phenol-soluble modulins (PSMs). Current efforts focus on structure-function relationship studies of PSMs, antimicrobial activities of PSMs, and the identification of the PSM exporter, with the long-term goals to produce anti-PSM therapeutics for the treatment of staphylococcal infections. Furthermore, together with our collaborators in China (Dr. Li at Fudan University), we identified and characterized the role of a novel surface protein in spread and virulence of hospital-associated MRSA in China.